VxTel
Silicon solutions for next-generation carrier networks the company's products use a unique signal-processing architecture.
| Date | Investors | Amount | Round |
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| - | investor | €0.0 | round |
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$550m Valuation: $550m | Acquisition | ||
| Total Funding | 000k | ||
VxTel operated as a semiconductor company, established in 1999 with its headquarters in Fremont, California, and offices in Colorado, Southern California, and Bangalore, India. The company's President and CEO was Shri Dodani, who brought experience from prior roles at Aztek Engineering, Nortel Networks, and Alcatel Network Systems. The board included notable figures such as Atiq Raza, founder of Raza Foundries, who served as Chairman.
VxTel specialized in creating silicon solutions aimed at the transition from traditional circuit-switched telephone networks to packet-based networks like the internet. The firm's core business involved the development and manufacturing of digital signal processors (DSPs) and software for Voice over Packet (VoP) applications. Its clients were telecommunication equipment manufacturers who used VxTel's components to build systems for next-generation carrier networks, enabling them to offer converged voice and data services more efficiently.
The company's main offering was a comprehensive VoP product suite that included a high-performance DSP, associated software, and complete reference designs. A significant feature of VxTel's technology was its signal-processing architecture, which was specifically optimized for voice and data processing, making it more efficient than general-purpose DSPs. This allowed for a high-density solution capable of supporting over 2,000 simultaneous voice connections on a single hardware card. This capability enabled service providers to support more customers with less equipment and at a reduced cost. After raising a total of $82.5 million over three funding rounds, VxTel was acquired by Intel in a cash transaction valued at approximately $550 million, with the deal closing on April 4, 2001. Upon acquisition, it became a wholly-owned subsidiary of Intel's Telecom Component Division.
Keywords: VxTel, semiconductor, Voice over Packet, VoP, digital signal processor, DSP, telecommunications, carrier networks, silicon solutions, packet-based networks, Intel acquisition, Shri Dodani, Atiq Raza, Fremont, network communications, voice processing, data communications, optical networks, unified communications, signal-processing architecture